As Americans prepare for Thanksgiving Day, let’s explore the bounty that the investment world holds on this occasion. This can be easily done by screening ETFs that have rewarded investors this year.
A few corners are easily crushing the broader market in the year-to-date period. ETFs — First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Reaves Utilities ETF UTES, Gabelli Financial Services Opportunities ETF GABF, Invesco S&P MidCap Momentum ETF (XMMO) and Roundhill Magnificent Seven ETF MAGS — from different zones have been the star performers so far this year and could be better plays in the coming months. These ETFs deserve special thanks and attention going into the New Year too (see: all the Categories ETF here).
How is the Stock Market Faring?
Wall Street has been enjoying a strong rally this year, with the three major indices touching a series of record highs. The artificial intelligence craze and rate-cut optimism have been the major driving factors. Additionally, optimism surrounding corporate growth under President-elect Donald Trump added to the strength.
The market is betting that the second Trump administration will provide a boost to stocks. Trump’s policies on restricting illegal immigration, enacting new tariffs, lowering taxes and reducing regulations may boost the economy but also accelerate inflation, limiting the Federal Reserve's ability to cut rates. The anticipation of greater tariff barriers and a step to move manufacturing back home is expected to drive stocks higher (read: Top ETF Winners from the Trump Trade).
Federal Reserve Chair Jerome Powell, in the latest meeting, slashed interest rates for the second time this year. The key interest rate was cut by 25 bps, bringing down the benchmark rate to 4.5%-4.75%, following the 50-bps cut in September 2024. Lower interest rates generally lead to reduced borrowing costs, helping businesses to expand their operations more easily and resulting in increased profitability. This, in turn, stimulates economic growth and provides a boost to the stock market.
In particular, Bitcoin is the biggest winner this year, approaching the historic $100,000 milestone. The launch of new spot Bitcoin ETFs and growing optimism about the tokens led to a solid rally in the world's largest cryptocurrency. The victory of Trump in the election and the introduction of options trading on U.S.-listed Bitcoin ETFs spurred excitement about the digital currency. President-elect Donald Trump vowed to make the United States “the crypto capital of the planet” (read: Bitcoin Nears $100K: ETFs to Ride on Its Unstoppable Rally).
Let’s discuss the abovementioned ETFs in detail that have rewarded investors this year:
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 108.48%
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 35 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $96.7 million in its asset base and trades in an average daily volume of 71,000 shares.
Reaves Utilities ETF (UTES) – Up 55.8%
Reaves Utilities ETF is the only actively managed ETF that seeks to provide returns through a combination of capital appreciation and income, primarily through investments in utility stocks. It holds 20 stocks with a heavy concentration on the top three firms. UTES has AUM of $275.2 million and trades in an average daily volume of 87,000 shares. It charges 49 bps in annual fees (read: 5 Winning S&P 500 Stocks & Their ETFs Since Election).
Gabelli Financial Services Opportunities ETF (GABF) – Up 52.3%
Gabelli Financial Services Opportunities ETF is an actively managed ETF seeking to harness the long-term economic trends of what Warren Buffett called “The American Tailwind.” It invests at least 80% in common stocks of financial services companies and holds 43 stocks in its basket. Gabelli Financial Services Opportunities ETF has accumulated $41.9 million in its asset base and trades in an average daily volume of 23,000 shares. It currently has an expense ratio of 0%.
Invesco S&P MidCap Momentum ETF (XMMO) – Up 52.1%
Invesco S&P MidCap Momentum ETF follows the S&P Midcap 400 Momentum Index, which is designed to identify mid-cap firms having the highest momentum scores. It holds 78 stocks in its basket, with key holdings in industrials, financials and consumer discretionary. Invesco S&P MidCap Momentum ETF has AUM of $3.2 billion and charges 94 bps in annual fees. It trades in an average daily volume of 246,000 shares and has a Zacks ETF Rank #2 (Buy).
Roundhill Magnificent Seven ETF (MAGS) – Up 51.8%
Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to the “Magnificent Seven” stocks. It has amassed $1 billion in its asset base and charges 29 bps in fees per year. MAGS trades in an average daily volume of 728,000 shares.
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Get it free >>Virtus Reaves Utilities ETF (UTES): ETF Research Reports
Invesco S&P MidCap Momentum ETF (XMMO): ETF Research Reports
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports
Gabelli Financial Services Opportunities ETF (GABF): ETF Research Reports
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